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Wendy’s (NASDAQ: WEN)
Q3 2024 Earnings Call
Oct 31, 2024, 8:30 a.m. ET

Wendy’s Sees Steady Growth Despite Challenges in Q3 2024

Key Highlights from the Earnings Call

• Prepared Remarks
• Questions and Answers
• Call Participants

Introduction and Overview

Operator

Good morning. Welcome to The Wendy’s Company earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session.

[Operator instructions] Thank you. You may begin your conference.

Aaron Broholm — Head of Investor Relations

Good morning, and thank you for joining our fiscal 2024 third-quarter earnings conference call. Kirk Tanner, our president and chief executive officer, will discuss business updates, while Gunther Plosch, our chief financial officer, will review our financial results and outlook. We will open the call for questions afterward. A presentation accompanying this conference call is available on our Investor Relations website at ir.wendys.com.

Before we begin, please note the safe harbor statement included at the end of today’s earnings release. This statement reminds investors that some of our discussions today may include forward-looking information about our plans and performance, which could differ significantly from actual outcomes due to various factors. Also, some comments will reference non-GAAP financial measures.

Solid Sales Growth Amidst Competitive Market

Kirk Tanner — President and Chief Executive Officer

Good morning, everyone, and thank you, Aaron. Aaron joined our team in September to lead investor relations, and we are happy to have him on board. I’ll start with key results and trends from the quarter before discussing ongoing initiatives to strengthen Wendy’s brand and operations.

In the third quarter, our restaurants reported a 1.8% increase in global systemwide sales, with same-restaurant sales growing by 0.2%. In the U.S., we remained competitive; despite challenges in the Quick Service Restaurant (QSR) burger category, we maintained our traffic share. Our team’s efforts helped sustain dollar share, thanks to the popularity of our core items, effective innovations, and relevant value offerings. Notably, our morning and late-night sales showed promising growth, with mid-single-digit increases in morning sales and high single-digit growth during late-night hours driven by our delivery and digital segments.

Internationally, sales grew at a high single-digit rate, fueled by nearly 100 new restaurant openings before the end of the quarter. Our Canadian market led our international same-restaurant sales with particularly strong breakfast traffic growth.

Digital sales surged by nearly 40% year over year, with the U.S. contributing over 17% to our sales mix. Improvements to our Wendy’s app have enhanced the user experience, bringing our total to approximately 45 million reward members, up from 43 million at the end of Q2.

During the last quarter, we opened 64 new Wendy’s locations globally, staying on track to achieve our goal of 250 to 300 new openings by year-end.

Brand Commitment and Future Strategy

I’ve been in my current role for nine months and am increasingly optimistic about our brand and its growth potential. Our new brand promise emphasizes delivering fresh, famous food made right every time for every customer. This means we are committed to operational excellence, ensuring a consistent customer experience at all Wendy’s restaurants.

The brand promise has been communicated to both employees and franchisees during our recent convention, receiving positive feedback. This promise serves as a cornerstone for our organizational culture, inspiring our workforce to prioritize customer satisfaction and uphold operational standards necessary for profitable growth.

We are focusing on four key elements: driving same-restaurant sales and share growth, accelerating digital initiatives, enhancing restaurant profitability, and expanding our unit development. By achieving these objectives, we aim to strengthen the Wendy’s brand and offer a high-quality experience to more customers globally.

Our updated U.S. incentive programs, launched in July, are resonating well with franchisees and support progress in our new restaurant pipeline. In September, we introduced similar development incentives in Canada and Latin America, sparking renewed interest in restaurant development.

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Wendy’s Strategy: Focus on Growth and Customer Experience Amid Restaurant Closures

Wendy’s is strategically targeting high-growth areas with plans to enhance customer experience. This move is supported by advancements in technology, improving drive-through and delivery services, as well as achieving higher employee satisfaction through an efficient labor model. Currently, the U.S. average unit volumes (AUVs) are above $2 million, with operating margins exceeding the system average, indicating a healthy restaurant system overall.

The company has completed restaurant reimaging at 89% of its locations worldwide, and efforts to enhance the restaurant footprint continue. A thorough review of individual restaurants confirmed that several locations are outdated and situated in underperforming areas. As a result, additional closures have been planned for this year. The restaurants targeted for closure currently have AUVs around $1.1 million and boast operating margins below the system’s average.

This initiative is designed to ensure that many of these closed units will eventually be replaced with new locations in more favorable areas, which will bring in significantly improved sales and profitability. Total closures in 2024, including those in the fourth quarter, are expected to be offset by new restaurant openings this year. Hence, net unit growth will remain approximately flat compared to last year. By the end of 2024, Wendy’s is projected to have opened over 500 new restaurants in the last two years, with aspirations for accelerated growth in 2025 and beyond. The company has secured development commitments aimed at achieving a net unit growth goal of 3% to 4% by 2025.

Looking toward Q4 and beyond, Wendy’s anticipates continuous improvement in year-over-year sales growth, starting from the third to the fourth quarter. This growth is fueled by the company’s dedication to customer satisfaction, which reflects in its craveable menu, innovative products, and value-focused offerings. Recently, Wendy’s successfully launched the Krabby Patty Burger and Pineapple Under the Sea Frosty in honor of SpongeBob’s 25th anniversary, showcasing the company’s culinary creativity. Early performance data indicates that this promotion has exceeded expectations, symbolizing the power of combining innovation with strategic marketing and solid execution.

As momentum builds, Wendy’s has an exciting array of campaigns planned for the weeks ahead. These include a new salted caramel Frosty, the return of the popular Mushroom Bacon Cheeseburger, and national marketing efforts for their iconic Spicy Chicken Sandwich. The marketing strategy has been refined to emphasize the “Gotta Be Wendy’s” tagline, spotlighting the appealing characteristics of their food. Positive reception from this approach has provided Wendy’s with confidence as they prepare to unveil further developments.

Sustaining restaurant profitability remains a top priority. Wendy’s sees tremendous potential to enhance profits in categories like beverages, particularly through an extended partnership with Coca-Cola. This partnership will leverage the Coca-Cola Freestyle platform, which provides over 100 drink options, aligning with customer preferences. The company is also launching a promotional campaign offering any-size drinks for just $1 to boost beverage sales. Additionally, breakfast sales growth is expected to outpace lunch and dinner sales, further driving margin improvement.

Investment in breakfast advertising is being emphasized, particularly with the national media campaign for breakfast burritos and the ongoing consistency in breakfast growth. The implementation of AI voice-enabled ordering technology aims to increase labor efficiency and elevate customer service. Positive test results in select locations indicate that broader implementation in 2025 will result in additional margin expansion opportunities.

Wendy’s commitment to these growth initiatives gives the company a strong outlook as the end of 2024 approaches. With a clear vision, Wendy’s aims to maximize its potential, ensuring profitability and shareholder value through effective execution of strategic priorities. More insights about the long-term growth strategy will be shared at the Investor Day scheduled for March 5, 2025.

In closing, appreciation is extended to all employees, franchisees, and suppliers for their hard work and contributions. Now, I will hand the discussion over to Gunther Plosch, Chief Financial Officer, for insights on our third-quarter results.

Gunther Plosch — Chief Financial Officer

Thank you, Kirk. In the third quarter, our global systemwide sales increased by 1.8% and by 6.6% on a two-year basis due to sales growth in both our U.S. and international segments, supported by new restaurant openings this year. The U.S. company restaurant margin held steady at 15.6% compared to the previous year. While higher average checks and improved labor efficiency were positives, they were offset by labor cost inflation and a decline in customer counts.

An increase in general and administrative expenses was partly due to higher compensation for employees and higher professional fees, despite a decrease in incentive compensation accruals. Adjusted EBITDA fell by 2.9% to approximately $135 million, mainly due to higher investments in breakfast initiatives and increased administrative expenses, but bolstered by rises in franchise royalty revenue.

Adjusted earnings per share also decreased, owing to the lower adjusted EBITDA and a higher effective tax rate, although this was slightly mitigated by fewer shares outstanding due to the repurchase program. Meanwhile, our free cash flow increased, primarily from lower cash payments for cloud computing services and reduced capital expenditures, which outweighed the investments in breakfast advertising.

Looking to 2024, we remain optimistic. Despite maintaining traffic share in Q3, we anticipate global systemwide sales growth of approximately 3% for the full year, comprising 1% to 2% same-restaurant sales growth and contributions from new openings. Momentum is strong as October’s U.S. same-restaurant sales saw significant acceleration compared to Q3, reinforcing our confidence in achieving the revised outlook for 2024.

Wendy’s Financial Outlook: Steady Growth and Strategic Initiatives Ahead

Wendy’s adjusted EBITDA projection remains firmly set between $535 million and $545 million. This stability comes despite an updated systemwide sales forecast that is being balanced by new franchise fees from restaurant closures in the fourth quarter, along with decreased general and administrative expenses.

Refined Expectations for the End of the Year

With just one quarter left in 2023, the U.S. company-operated restaurant margin expectation has been adjusted to a range of 15% to 16%, while the outlook for adjusted EPS now lies between $0.99 and $1.01. Capital expenditures are anticipated to be between $90 million and $100 million, with free cash flow projected at $275 million to $285 million. The company’s capital allocation strategy, focused on efficient growth, remains unchanged.

Investment and Return Strategy

The first focus of Wendy’s is on profitable growth, staying committed to its asset-light model. Today, the company declared a fourth-quarter dividend of $0.25 per share, leading to a projected full-year dividend of $1 per share in 2024. This places Wendy’s in a strong position, offering an industry-leading mid-single-digit dividend yield. This commitment demonstrates the company’s dedication to providing meaningful returns to shareholders through dividends and opportunistic share repurchases.

Share Repurchase Activity

As of October 24, year-to-date, Wendy’s has repurchased roughly 3.6 million shares. There remains approximately $248 million available on its $500 million share repurchase authorization, which is set to expire in February 2027. The expectation for total share repurchases in 2024 stands at approximately $75 million. Through this approach, Wendy’s aims to drive overall systemwide sales growth, supported by positive same-restaurant sales and an expanding global footprint, paving the way for substantial free cash flows.

Upcoming Investor Relations Calendar

I will now introduce Aaron Broholm, our Head of Investor Relations, to present our upcoming IR events.

Aaron Broholm — Head of Investor Relations

Thank you, GP. On November 19, we will be in Chicago for a Non-Deal Roadshow hosted by Morgan Stanley, followed by the Stephens Investment Conference in Nashville on November 20. We’ll also attend the Barclays Eat, Sleep, and Play Conference in New York City on December 3. If you’re interested in attending any of these events, please contact the respective analyst or equity sales contact at the hosting firm.

Finally, we intend to report our fourth-quarter and full-year earnings on February 13, 2025, with a conference call to follow. An Investor Day is scheduled for March 5, where additional details will be shared. We will now move to the Q&A session. Due to the number of analysts, we ask that you limit yourselves to one question only.

Operator:
Thank you. [Operator instructions] Our first question today comes from David Palmer of Evercore ISI. Your line is open. Please proceed.

David Palmer — Analyst

Thanks. I’d like to ask about the unit growth outlook. Given recent closures, how do you assess net unit growth in the U.S.? Meanwhile, international development seems promising. Are you leaning more towards international expansion in your future strategies? Also, regarding the Krabby Patty success, can you share any plans for longer-term innovations?

Kirk Tanner — President and Chief Executive Officer

Good morning, David. I appreciate your question. To address unit growth, our overall strategy aims to enhance an already robust system. For context, 89% of Wendy’s restaurants have undergone image activation, and we’ve opened around 500 new locations in the past two years, with an expected 250 to 300 new restaurants this year. We will close select underperforming locations to further strengthen our brand.

As for future development, we project growth of 3% to 4%, with 70% focused on international and 30% on domestic. This approach supports not just our aspirations for 2025 but also for 2026 and 2027 and beyond.

Turning to our menu, the Krabby Patty has performed well, reflecting our commitment to quality with fresh, never frozen ingredients. Moving forward, we plan to boost our core menu, keep an active innovation pipeline, and deliver value through offerings like Biggie Bag. These areas will remain central to our strategy.

Operator:
Thank you. Our next question comes from Dennis Geiger of UBS. Your line is open. Please proceed.

Dennis Geiger — Analyst

I want to revisit the breakfast segment performance, which seems to be strong due to your advertising and innovative efforts. Kirk, could you provide an update on your breakfast strategy and expectations for 2025?

Kirk Tanner — President and Chief Executive Officer

Thank you, Dennis. Breakfast is indeed crucial for us. Since its launch in 2020, we have continued to invest in its growth, and we’re seeing positive results. (Continued…)

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Wendy’s Breakfast Strategy Set for Long-Term Growth Amid Consumer Challenges

Wendy’s is keen on expanding its breakfast offerings, seeing a significant opportunity to enhance its brand. The company believes that breakfast is a fast-growing segment, outpacing others in the industry and providing a favorable boost to Wendy’s overall performance.

The team sees this initiative as an important part of their long-term strategy rather than a short-term fix. As they roll out improvements, customers can expect to see a continued focus on breakfast in the coming years.

Operator

Thank you. Our next question comes from Danilo Gargiulo of Bernstein. Your line is now open. Please go ahead.

Danilo Gargiulo — Analyst

Thank you. You’ve mentioned that the overall economic environment has been challenging as we navigate through Q3. Can you provide insight into consumer health, both in the U.S. and abroad? Are there signs of improvement as we approach the fourth quarter? Any updates would be appreciated.

Kirk Tanner — President and Chief Executive Officer

Certainly. Reflecting on Q3, the consumer environment remains tough, but we witnessed a shift in momentum during the latter half of the quarter that instills some confidence. We expect this positive trend to carry into Q4 and potentially into 2025 as well.

While Q3 was difficult, the second half showed signs of improvement over the first half, indicating some recovery in consumer spending.

Operator

Thank you. Our next question comes from John Ivankoe of JPMorgan. Your line is now open. Please go ahead.

John Ivankoe — Analyst

Thank you very much. I’d like to discuss prime costs. In the most recent quarter, food, paper, and labor costs approached 63%, which is notably high compared to industry norms. Have you benchmarked this figure against peers, and can you share any straightforward strategies to improve this ratio?

Kirk Tanner — President and Chief Executive Officer

Yes, we have engaged in extensive benchmarking and recognize the need to enhance our restaurant-level margins. This goal can be divided into two key areas: increasing efficiency and addressing cost management. Investments in AI technology for our drive-thrus are one way we aim to streamline labor costs while improving service.

The balance between food and labor costs is critical, and we plan to reduce labor expenses while concurrently enhancing food cost efficiency. Additionally, we have a new partnership with Coca-Cola aimed at boosting our beverage sales, which can positively impact our profit margins. These three focus areas will guide our efforts going forward.

Operator

Thank you. Our next question comes from Jeffrey Bernstein of Barclays. Your line is now open. Please go ahead.

Jeffrey Bernstein — Analyst

Thanks. I have one main question and a follow-up. First, regarding the adjusted EBITDA guidance, despite lower comp and system sales, can you elaborate on how you plan to offset these challenges? Additionally, could you discuss unit growth, particularly the success of franchisees both in the U.S. and internationally? What are your expectations for new openings in 2025, considering recent closures?

Gunther Plosch — Chief Financial Officer

Good morning. Regarding adjusted EBITDA, you’re correct in noting that our tightened sales range has created challenges. However, we have been able to offset some of this through increased franchise fees, resulting in valuable support for our EBITDA. We’ve also seen slight reductions in G&A expenses while maintaining our guidance range of $255 million to $265 million.

To clarify about closures, we face about 140 closures, equating to a net unit growth rate of 2%. This means openings and closures are effectively leveling each other out, which strengthens our confidence for a projected 3% to 4% growth in 2025. Many of these closures had been anticipated over the next few years, which facilitates a clearer path for future net openings.

Operator

Thank you. Our next question comes from Brian Mullan of Piper Sandler. Your line is now open. Please go ahead.

Brian Mullan — Analyst

Thanks. Back to the breakfast strategy, Kirk, can you share insights on the beverage component? Are you optimistic about its potential, and do you see opportunities for innovation in that area?

Kirk Tanner — President and Chief Executive Officer

Absolutely. I believe there is significant potential in beverages, especially as we broaden our breakfast menu. We’ve established a strong foundation with high-quality ingredients and offerings for our customers. Focusing on beverages presents an exciting opportunity moving forward.

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Wendy’s Promises Innovative Beverage Offerings Amidst Financial Growth

Innovations Driving Customer Excitement

Wendy’s is set to enhance its beverage portfolio, aiming to boost profitability throughout breakfast and beyond.

Customer Engagement Through Iconic Promotions

Chris O’Cull from Stifel inquired about the recent success of the Krabby Patty promotion. Kirk Tanner, Wendy’s CEO, emphasized that the 25-year anniversary of SpongeBob has resonated with many customers, highlighting a positive response to this campaign. He noted that successful partnerships can enhance brand presence, driving customer traffic and engagement.

Strong Performance Expectations Going Forward

Lauren Silberman from Deutsche Bank asked about recent growth trends. CFO Gunther Plosch confirmed significant acceleration in October, building upon a strong third quarter. Wendy’s has implemented popular menu items, including the salted caramel Frosty and Spicy Chicken Sandwich, which are expected to maintain momentum. The company is optimistic about sustaining a higher level of performance moving forward, with traffic maintained across all income categories.

AI Enhancements in Drive-Thru Experience

Brian Harbour from Morgan Stanley posed a question regarding the use of AI in Wendy’s drive-thru operations. Tanner responded that the company is pleased with improvements in accuracy and efficiency driven by AI technology. With 70% of transactions occurring at the drive-thru, enhancing this part of the restaurant is a top priority. Ongoing improvements are expected to lead to labor efficiencies in the restaurant model.

Competitive Landscape and Value Offerings

Jon Tower from Citi queried about the Biggie Bag performance against competitors. Plosch acknowledged its strong consumer appeal. Despite a competitor’s meal deal promotion, Wendy’s experienced a slight year-over-year sales increase. The company is committed to innovation and quality, aiming to excite value-seeking consumers while ensuring operational excellence. By focusing on a combination of core menu strengths and innovative offerings, Wendy’s seeks to excel in the competitive fast-food landscape.

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Menu Innovation Fuels Growth: Insights from Kirk Tanner on Current Trends and Strategies

Operator

Thank you. Our next question comes from Jim Salera of Stephens. Your line is now open. Please go ahead.

Jim Salera — Analyst

Hey, guys, good morning. Thanks for taking our questions. In your prepared remarks, you mentioned the October acceleration and the implied acceleration in 4Q guidance. Could you provide more details on which menu components are driving this boost? I’ve noticed a lot of saucing advertisements during football games this season. How is that contributing? Additionally, how do you plan to address potential sales decreases as the Krabby Patty benefit starts to roll off?

Kirk Tanner — President and Chief Executive Officer

For Quarter 4, the momentum across our menu is noteworthy. Large sandwiches have performed exceptionally well, and our new Saucy Nuggs have gained popularity. As GP mentioned earlier, maintaining a balanced approach across our menu underpins our confidence in continuous growth.

This isn’t due to one specific item; it’s about the combination of our core offerings. While the Krabby Patty has indeed boosted sales, our robust core menu continues to drive growth. Looking ahead, we’re excited to introduce seasonal flavors, like salted caramel, and enhance favorites such as our Mushroom Bacon Cheeseburger, showcasing our commitment to innovation and providing value to our customers.

Operator

Thank you. Our next question comes from Sara Senatore of Bank of America. Your line is now open. Please go ahead.

Sara Senatore — Analyst

Thank you very much. I want to revisit the topic of store closures. Are there any geographical trends regarding these closures? Many restaurants pursuing rapid growth seem to be focusing on the Sunbelt and thriving cities instead of the West Belt or Northeast. Should we view this as a reflection of population shifts, and what does this mean for overall growth? Is there still room for expansion beyond these population dynamics?

Kirk Tanner — President and Chief Executive Officer

Great question, Sara. Our closures aren’t concentrated in one area; they’re spread out across the U.S. Our brand has been around for 55 years, and some of these restaurants are overdue for updates. Strengthening our system is our key aim, rather than responding to specific regional trends.

Despite the closures, we still see significant potential for growth. There’s room to open a couple thousand new locations domestically alone. Internationally, we also aspire to expand considerably. Our strategy is to enhance our system by prioritizing high-performing restaurants since they outperform older, less efficient locations.

Operator

Thank you. Our next question comes from Andrew Charles of TD Cowen. Your line is now open. Please go ahead.

Andrew Charles — Analyst

Thank you. I’d like to clarify the breakfast segment’s performance, which is seeing mid-single-digit growth while overall comps remain flat. How incremental are breakfast sales compared to previous years?

Kirk Tanner — President and Chief Executive Officer

The breakfast segment is highly incremental, both in terms of sales and labor efficiency within our restaurants. This growth is outpacing overall category performance, which reinforces our strategy to invest in this daypart. It’s crucial not just for our growth but also beneficial for our franchisees, making breakfast a key focus moving forward.

Operator

Thank you. Our next question comes from Gregory Francfort of Guggenheim Securities. Your line is now open. Please go ahead.

Gregory Francfort — Analyst

Thank you for the opportunity. I have a question regarding your costs. Could you discuss the current commodity and labor trends regarding inflation, and how you foresee these playing out in the near to medium term?

Gunther Plosch — Chief Financial Officer

Good morning, Greg. On the commodity side, we are experiencing a slight uptick in inflation. While it was previously forecasted to remain flat, we now expect about a 1% rise in commodity costs for the year, primarily driven by beef prices. Labor rates are stable, tracking within the 3% to 5% range discussed last quarter. We have locked in prices for the year and do not anticipate further movement. Our focus now shifts to securing commodity prices for 2025.

Operator

Thank you. Our next question comes from Jake Bartlett of Truist Securities. Your line is now open. Please go ahead.

Jake Bartlett — Analyst

Thanks for taking my question. Kirk, you mentioned operational improvements. How significant is this opportunity for enhancing sales, especially looking ahead to ’25?

Kirk Tanner — President and Chief Executive Officer

You raise a vital point. Our strategy is all about prioritizing the customer experience, enhancing each restaurant’s performance, and operating efficiently. We believe significant opportunities exist in operational improvements, and we intend to focus on building a culture around elevating every restaurant to its highest potential.

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Wendy’s Focuses on Operational Excellence and Beverage Promotions for Growth

Strategic Objectives Drive Customer Experience at Wendy’s

Wendy’s is committed to enhancing customer experiences through superior operational excellence, innovative marketing, and digital initiatives. Kirk Tanner, President and CEO, emphasized the importance of operational efficiency as essential to executing their strategy. He noted, “Operational excellence is what delivers against your strategy.” To ensure these ideals are met, Wendy’s engages with franchisees and aligns all efforts towards consistent customer satisfaction.

Promotional Strategies: The $1 Any-Size Soft Drink Campaign

Next, Tanner addressed the recently launched $1 any-size soft drink promotion, a tactic that has proven successful across the industry. “We are excited about the early success we are seeing,” he noted. This promotion coincides with Wendy’s strong partnership with Coca-Cola, leveraging their advanced Freestyle machines that offer customers over 100 beverage choices. Tanner highlighted that while the promotion is set for the fourth quarter, its future beyond this period remains uncertain. “Beverage sales present a real profit opportunity for us moving forward,” he said.

New Leadership: Building A Stronger Team

Analyst Christine Cho from Goldman Sachs inquired about Wendy’s organizational changes, including recent executive hires. Tanner confirmed that these changes enhance accountability and support growth initiatives. He expressed confidence in the newly structured teams, aiming to accelerate both U.S. and international growth. “We are organizing ourselves to drive our business effectively, focusing on both domestic development and international operations,” he explained.

Engagement Through Collaboration: The SpongeBob Campaign

Wendy’s recent collaboration with SpongeBob SquarePants has also captured attention. Analyst Alex Slagle asked what strategies contribute to this campaign’s success. Tanner pointed out that effective social media campaigns, combined with a strong digital presence and engaging menu offerings, have created a buzz around this partnership. “We’ve executed well with exciting content for customers,” he said, underscoring the importance of combining multiple elements for success.

Future Opportunities: Potential Partnerships and Endorsements

Following up on the Krabby Patty promotion, Jim Sanderson from Northcoast Research inquired about additional partnerships or endorsements. Tanner affirmed the success of this initiative as a sign to explore more collaborations in the future. “We always look for opportunities that enhance our menu and build the brand,” he stated, reinforcing Wendy’s openness to innovative partnerships moving forward.

Market Trends: Insights on Income Cohorts

Finally, analyst Logan Reich from RBC sought insights on market share trends across different income brackets. Gunther Plosch, CFO, reported that Wendy’s maintained its share across lower and higher-income groups in the third quarter. However, he noted a lack of data for October, making it difficult to comment on recent trends. “The data is not available, so I really can’t answer your question,” Plosch explained.

As this earnings call concluded, Aaron Broholm, Head of Investor Relations, thanked everyone for their participation, indicating that updates would continue in the next quarterly call in February.

Wendy’s Earnings Call Highlights Key Leaders and Analysts

Key Participants from the Earnings Call

Aaron Broholm — Head of Investor Relations

Kirk Tanner — President and Chief Executive Officer

Gunther Plosch — Chief Financial Officer

David Palmer — Analyst

Dennis Geiger — Analyst

Danilo Gargiulo — Analyst

John Ivankoe — Analyst

Jeffrey Bernstein — Analyst

Brian Mullan — Analyst

Chris O’Cull — Analyst

Lauren Silberman — Analyst

Brian Harbour — Analyst

Jon Tower — Analyst

Jim Salera — Analyst

Sara Senatore — Analyst

Andrew Charles — Analyst

Gregory Francfort — Analyst

Jake Bartlett — Analyst

Peter Saleh — Analyst

Christine Cho — Analyst

Alex Slagle — Analyst

Jim Sanderson — Analyst

Logan Reich — Analyst

Important Details and Disclaimer

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